Key Points:
- National Bank of Canada exercised a put option to sell over $1.3 million in BlackRock’s iShares Bitcoin Trust ETF.
- While Canada’s largest bank reduced its exposure to Bitcoin, Bank of Montreal invested approximately $150 million in Bitcoin through spot ETFs.
The National Bank of Canada has taken a cautious stance on Bitcoin, as revealed in a recent filing with the U.S. Securities and Exchange Commission (SEC).
Read more: Bank of Canada’s Report Sparks Fresh Insights into CBDC Adoption
National Bank of Canada Reduces Bitcoin ETF Holdings
The National Bank of Canada disclosed that it had exercised a put option to sell over $1.3 million worth of shares in BlackRock’s iShares Bitcoin Trust ETF.
The decision comes amid ongoing outflows from Bitcoin ETFs, driven by global economic uncertainty and market reactions to trade tensions. Investors have been shifting away from riskier assets, favouring safer financial instruments.
Despite this, the National Bank of Canada acknowledges that Bitcoin ETFs provide exposure to the cryptocurrency without the complexities of direct ownership and regulatory concerns. Canada has been at the forefront of Bitcoin ETF adoption, with financial institutions playing a key role in promoting the market.
Canadian Banks Take Diverging Approaches to Bitcoin
While the biggest Canadian bank is reducing its Bitcoin exposure, another is increasing its investment. Bank of Montreal (BMO), Canada’s third-largest bank, has quietly accumulated a significant stake in Bitcoin ETFs.
According to an SEC filing, BMO has invested approximately $150 million in Bitcoin through spot ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) makes up the bulk of this investment, accounting for $139 million. The remainder is spread across Ark 21Shares Bitcoin ETF (ARKB), Fidelity Wise Origin Bitcoin Fund (FBTC), and Grayscale Bitcoin Trust (GBTC).
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